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Hampton Roads Home Sales Up 28 Percent Over Last October

Great news for Hampton Roads residents. The housing market continues to improve, according to The Virginian-Pilot, as October's numbers show to be greater than September's and October 2008.

Much of the rebound has come from first-time home buyers taking advantage of the $8,000 tax-credit, which will hopefully continue because of the recent extension of the tax-credit until April 2010.

Also, the extension of the tax-credit includes higher-incomes and an option for current homeowners to "move up". These qualities will hopefully help move more valuable houses on and off the market that first-time homebuyers could not purchase.

"First-time buyers rushing to take advantage of the now-extended federal tax credit continued to drive home sales in Hampton Roads in October, according to a report released Monday.

Last month, sales volume was up 2.3 percent over September and 28.1 percent over October 2008, according to Real Estate Information Network Inc. The Virginia Beach-based multiple listing service reported 1,107 homes in the region sold in October, compared with 864 a year ago.

October's was the biggest year-over-year gain for 2009, and it was the fifth month of such increases since home-sales volume turned positive in June. The rebound in home sales stands in stark contrast to the homes market a year ago, when sales were plummeting amid deteriorating economic conditions.

The federal tax credit for first-time homebuyers has buoyed sales across the country. Congress recently extended the $8,000 tax credit, originally scheduled to expire this month, through April and expanded the credit to include $6,500 for home-owners who have lived in their home for at least five years and want to buy a replacement primary residence.

'The tax credit, no question about it, has had a positive impact on the market,' said Ron Pearman, regional vice president for Long & Foster Real Estate. Of a sampling of homes that closed last month with Long & Foster, 70 percent were first-time buyers, Pearman said.

Other local brokers said Monday that the tax credit has accounted for as much as half of their recent sales."

Read the full story.

Posted on Tuesday, November 17, 2009 - 5:52pm

With Home-buying tax Credit Extended, It's a Good Time to Move Up

The Daily Press recently spoke with one couple who is taking advantage of the new tax credit and housing market to move out of their starter home.

This is a great time to move-up to a new home for a number of reasons:

1.  The new $6,500 tax credit. (See details.)

2.  The market is full of great bargains.

3.  Interest rates are still low.

Hopefully the move-up credit will be a big help to homeowners, and will help with the housing market recovery.

"George and Florence Sutton bought what they thought would be their starter home in 1990. Nearly 20 years later, they're finally moving up.

Turns out it's a good time to do so, with an $8,000 home buyer tax credit, low interest rates and a slew of inventory to pick from.

'Now is an excellent time to be looking for that move-up home because the bargains available on the more expensive properties are just unbelievable,' said Keith Canty, a real estate agent with Greg Garrett Realty. 'They lose some when they sell, but they gain much, much more when they buy. Anybody that can, this is an excellent time to do that.'

This summer, an up to $8,000 tax credit breathed enough life into a lackluster housing market locally and across the nation that Congress saw fit to extend and expand it. The Suttons saw it as a good opportunity to snag a move-up home they've been thinking about for three or four years, now that their kids are grown."

Read the full story.

Posted on Tuesday, November 10, 2009 - 6:50pm

Obama Signs Bill to Extend Homebuyer Tax Credit

Today President Obama signed a bill into law that extends the $8,000 tax credit to first-time home buyers until April 30, 2010, and includes a tax credit for home buyers who "move up" or "trade-in" their home.

The tax credit has greatly helped to stabilize the housing market, and could make an even larger impact by including more home buyers.

Under the new bill, home buyers who are have lived in their home for at least five concurrent years over the past eight years, and purchase a new home, are eligible for a $6,500 tax credit. The new house does not have to cost more than the orginial home. Also, the credit is available for home buyers who once owned a home (and lived there for at least five concurrent years over the past eight years), but have since sold it and have been renting.

Another expansion in the new bill is that buyers with higher incomes can qualify for either credit. The earnings cap has been amended to $125,000 for an individual and $225,000 for a couple. To learn more about the tax credit extenstion and expansion, read the following information form the National Association of Realtors.

Q.  Existing homeowner credit: Must the new house cost more than the old house?

A.  No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Q.  I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

A.  Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Q.  I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

A.  Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).

Q.  I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000.  Will I be able to use any of the $6500 tax credit?

A.  No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Q. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

A.  Yes.  Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.

Q.  I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

A.  You do not have to close before December 1. Once the legislation has been signed, it will be as if the November 30 deadline had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Posted on Friday, November 6, 2009 - 11:02am